- The Euro has fallen against the US dollar during the trading session here on Monday, reaching back towards the 1.16 level.
- But I think at this point in time, you’ve got a scenario where we’re just probably going to grind sideways because there are a lot of things going on that traders will be wondering about.
- For example, a lot of traders are waiting to see what the Federal Reserve is going to do as far as interest rates.
- Interest rates seem to be positioned to fall, but the question is how far.
Furthermore, you also have to ask questions about whether or not the economy is going to have major problems, because if that’s the case, it does tend to cause some problems for the dollar, and then the dollar will suddenly react really well because of treasury markets. So, we’ll just wait and see on that.
Technical Analysis
As far as the technical analysis is concerned, the 1.16 level is important with the 50 day EMA sitting right there as well. If we were to break down below the 50 day EMA, then the market could go look into the 1.14 level. On the upside, if we do in fact rally the 1.18 level is the scene of a little bit of a double top. And if we can clear that, that opens up a move to the 1.19 level.
Ultimately though, I suspect this is a market that’s going to go range bound in a very tight pattern at the moment. And I just don’t see how things change in this environment with the just tightness of the markets and the uncertainty when it comes to a whole mess of problems. And then on top of that, have a serious lack of momentum volume things like that due to the fact that this is a time of year that’s typically slated for vacations for larger traders, so Maybe a little bit of sideways action ahead here
Ready to trade our daily Forex analysis? We’ve made a list of the best forex trading platforms for beginners worth trading with.
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
